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Case Study: Tips for buying in Eastern Europe

Always check the title deeds for the property. Ownership records can be haphazard in eastern European countries and the person selling the property may not actually own it.

Save a deposit. Most banks operating in eastern Europe will not lend more than 70% of the value of the property, so you will need to save a deposit of at least 30%

Most local banks will lend in euros or the local currency. Most investors choose euro mortgages because they have lower rates Ð in Poland, for example, typical rates are 7.5% in zloty or 3.85% in euros. But remember there will be a currency risk if you receive rent in the local currency.

Take advice on setting up a company. In Bulgaria, foreign individuals can own buildings but not land, so buyers are usually advised to set up a company, which can own both. Also take advice on the tax implications